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Bitcoin has once again found itself caught within a bout of consolidation as it ranges sideways above its key near-term support level at $8,700. Despite BTC’s recent sell-off that sent it reeling below $9,000, the cryptocurrency’s bulls have been able to defend this support level, which may be a bullish sign.

Although there are analysts that anticipate Bitcoin to see further downside in the near-term, it is imperative to note that one prominent analyst is now pointing to Bitcoin’s mining difficulty adjustment as a sign that another major bull run is imminent.

Bitcoin Trades Sideways as Analysts Anticipate Further Near-Term Downside

At the time of writing, Bitcoin is trading up marginally at its current price of $8,780, which is just a hair above its key near-term support level of $8,700 that has held strong over the past several days and weeks.

It does appear that BTC is currently forming a fresh trading range between $8,700 and $8,900, as its price has been caught within this range for the past couple of days. If this range continues holding strong, traders may be in for another extended period of sideways trading similar to that seen when the crypto was caught between $9,000 and $9,500.

In the short-term, analysts are feeling increasingly bearish on Bitcoin, with one analyst setting a target in the lower-$8,000 region as a level at which he anticipates the crypto to find meaningful long-term support.

Hsaka, a popular cryptocurrency analyst on Twitter, mused this possibility in a recent tweet, concisely saying:

“$BTC: Time to bring it home.”

BTC Mining Difficulty Adjustment May Prove to be Bullish

Regardless of Hsaka’s bearish near-term assessment of Bitcoin, another more fundamental factor could point to an imminent bull movement for the cryptocurrency in the mid-term.

PlanB, another popular cryptocurrency analyst on Twitter, spoke about this possibility in a recent tweet, pointing to a chart that shows that drops in BTC’s mining difficulty – like the one it recently incurred – are historically followed by large bull movements, which may mean that further bullishness is inbound.

“9 years of #bitcoin difficulty adjustment: like clockwork,” he explained while pointing to the chart seen below.

In the coming few hours and days, Bitcoin’s price may retrace further before it finds any long-term support, but the mid-term outlook is beginning to look strikingly bullish.

Featured image from Shutterstock.

Cole Petersen , 2019-11-13 21:00:23

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

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Nick Chong , 2019-11-10 12:00:38

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